Shuttered Wisconsin health insurer to pay $8.7M for multi-state fraud scheme

Appleton, Wis.-based Partners in Healthcare was found guilty of running a multi-state medical insurance scheme and ordered to pay $8.7M in restitution, according to a report in the Post Crescent.

Court documents released by the U.S. District Court of Southern Florida state that PIH violated regulations mandated by the FTC.

The Better Business Bureau of Wisconsin began an investigation into the company in September 2011 after the FTC received numerous complaints from consumers across the country. The complaints alleged that PIH misled consumers in 32 states who believed they were purchasing medical insurance but had instead been sold a medical discount card.

The BBB referred the case to the FTC in Oct. 2013. The FTC sued and shut down PIH in Sept. 2014.

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